SMM News: 11, Argentina's general election primary vote. The current president, Macri, lags behind opposition candidate Fernandes by nearly 15%. Subsequently, on the 12th, Argentina's financial markets suffered a sharp shock, stock markets and bonds fell sharply, global market panic soared rapidly, and precious metal gold took advantage of the chaos to win and soar sharply!
On Tuesday, the dollar index opened short-term gains, then fell slightly, currently trading at 97.55; spot gold continued to soar after the opening of trading, has now broken through the $1525 line. As of press time, spot gold was trading at $1525.51 an ounce.
Argentina elects unexpected Stock Exchange Bond "three sha"
On August 11, local time, Argentina held a presidential primary. Previously, almost all the media and opinion polls believed that incumbent President Macri (MauricioMacri) could win. But the ruling party's fiasco came as a surprise to all opinion polls and the media.
According to the Argentine New World Weekly, nearly 33 million voters voted in the primary on the same day, accounting for 75 percent of the total electorate. According to the results of the vote, the Fern á ndez combination of the "National Front" won 47.37% of the vote, while Macri of the Alliance for change received 32.23% of the vote. At 22:30 that evening, Macri announced his defeat in the primary.
Many market participants believe that the results of the primary election is a key indicator of the first round of Argentina's presidential election on October 27. Mr Macri's defeat, far more than expected, raises serious doubts about whether the incumbent president will still have a chance of being re-elected in October.
Due to the exposure of Argentina's presidential primary, the country's market suffered three sha, of which the country's main stock index, the Merval index, fell more than 38% in intraday trading, the biggest one-day decline in history; the Argentine peso, the country's currency, fell nearly 37% against the dollar at one point, breaking a record low; and five-year sovereign debt credit default swaps soared 938bp in one day. Argentina's central bank intervened in currency markets for the first time since September, also showing a sharp rise in panic and mistrust in financial markets.
The collapse in Argentine stocks and bonds prompted analysts to warn that there was widespread panic in the financial markets, allowing market investors to smell the crisis.
The collapse of the Argentine market has affected the trend of the global market
After huge swings in financial markets, Fitch, an international rating agency, warned that a further deterioration in the Argentine market would affect its rating. Morgan Stanley downgraded Argentine stocks to "inferior markets" from "neutral", downgraded Argentine sovereign bonds to "reduced holdings" from "neutral", and expected the Argentine peso to depreciate by another 20 per cent.
The collapse of the Argentine market also affected global markets last night: the Dow closed down nearly 400 points on Monday.
The Dow Jones industrial average fell 391points, or 1.49 per cent, to 25896.44; the S & P fell 36.21 points, or 1.24 per cent, to 2882.44; and the Nasdaq composite index fell 1.2 per cent to 7863.41.
Risk aversion sentiment rose sharply on Monday, with spot gold rising sharply on Monday, reaching a six-year high of $1519.00 an ounce in the US, with gold closing at $1510.91 an ounce.
Technical Analysis on the trend of spot Gold Price
Spot gold rose further on the last day of trading, hitting a more than six-year high of $1519.88 an ounce since April 2013, as gold prices continue to rally steadily. The daily chart MACD red kinetic energy column is stable, the KDJ random index is partial upward, indicating that the gold price rising kinetic energy is still strong, is expected to further expand the rally.
Spot gold daily chart
On the 4-hour chart, gold prices continue to trade near their highs, the MACD green kinetic energy column is narrowed, and the KDJ random index is moderately higher, indicating that gold prices will also rise further in the short term.
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